To assure you of our strength and stability and the safety of your deposits, we’d like to provide you with the following information about National Penn.
National Penn has had a responsible and prudent credit culture since our founding more than 130 years ago. We have diverse assets and a broad revenue stream, all of which contribute to our stability.
To protect against potential losses, our holding company, National Penn Bancshares, Inc., and our banking subsidiaries are all “well-capitalized,” as defined in government banking regulations.
The U.S. financial services industry is highly regulated. National Penn and our banking subsidiaries are each supervised by various government bank regulators.
Since 2008, FDIC insurance has changed many times. For a history of the changes refer to the FDIC Web site link on the right. The standard amount of FDIC insurance is currently $250,000 per depositor. The $250,000 limit is permanent for certain retirement accounts, which include IRAs. The $250,000 limit is temporary for all other deposit accounts through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except certain retirement accounts, which will remain at $250,000 per depositor. The FDIC provides separate coverage for deposits held in different account ownership categories. If you would like to know how much FDIC insurance is available in your particular situation, please stop at any of our branch offices.
At the same time the FDIC insurance amounts were changed a new program called the Transaction Account Guarantee (TAG) Program provided unlimited FDIC insurance for all Non-Interest Bearing Deposit Transactions accounts. This program has also changed and now all funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010 through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.
The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS
As mentioned above, the Transaction Account Guarantee (TAG Program) will expire December 31, 2012. Absent an extension of this program by Congress, the amount of coverage on these accounts will revert from unlimited coverage to $250,000 maximum under the FDIC’s general deposit insurance rules. This notice is being provided to give customers ample time to review their accounts and make any changes they deem appropriate.
For questions about FDIC insurance coverage call the FDIC tollfree 1.877.ASK.FDIC (1.877.275.3342) or ask any branch office representative.
National Penn is also a member of the Certificate of Deposit Account Registry Service (CDARS®), which can protect your money with FDIC coverage, up to $50 million. See any branch representative for details.
Updated: December 13, 2012